Hi, I recently left an organization on 29 April where I had worked for 5 years and was eligible for gratuity. However, on my last working day, the employer shared a mass email to all the employees stating a new salary structure and standardizing the basic to 50%. This has impacted my gratuity. Can anyone shed light on whether this is legal or can be challenged, and how?
Looking forward to your response.
Thanks!
From India, Noida
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1Looking forward to your response.
Thanks!
From India, Noida
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You can demand the gratuity based on your actual salary. Salary means the full gross salary. It is a misinterpretation that gratuity is payable only on the basic salary. The definition of basic wages under the EPF Act and Gratuity Act is almost the same, and the Supreme Court has provided a clarification on the wages as defined in the EPF & MP Act. The same principle can be adapted in the case of gratuity as well. Please follow the link given below for further information.
Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
After reading the article in the link, if you have any queries, please put them here.
From India, Kannur
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Madhu T K: Payment of Gratuity and Gratuity Qualifying Salary
After reading the article in the link, if you have any queries, please put them here.
From India, Kannur
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Dear member,
You mentioned that your employer standardized your basic salary to 50% just a few days before you left the company. What was your previous basic salary? Has it been reduced, causing you financial loss? Could you clarify what the amount would have been without the standardization and what it is after the standardization?
Please provide clarification.
Thanks,
Dinesh Divekar
From India, Bangalore
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You mentioned that your employer standardized your basic salary to 50% just a few days before you left the company. What was your previous basic salary? Has it been reduced, causing you financial loss? Could you clarify what the amount would have been without the standardization and what it is after the standardization?
Please provide clarification.
Thanks,
Dinesh Divekar
From India, Bangalore
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Salary working format.xls